Comparing and picking out a policy from lots of insurance providers was made much easier with the help of this great site.Lucy F, Bradford UK

Car Insurance Groups Explained

Understanding what insurance groups and how they are assigned will go a long way toward perceiving the cost and value of different insurance plans and benefits. You may have heard or read the term on insurance company sites, insurance broker sites or even on blogs, but their meaning and importance may not have been explained well. Many insurance professionals use the phrase so often that they might have forgotten that the average consumer might only vaguely understand it. Having more extensive knowledge than surface information may save you money, time and aggravation as you search for proper cover at an affordable price.

Car insurance classifications or groups play a very large role in determining every motorist’s car cover premiums. Understanding your applicable insurance groups may help you tailor your search or choose the more fitting policy for your long term goals. When purchasing a vehicle, solid understanding of its impact on your insurance risk group categories can influence your choice toward saving significant funds on insurance or spending considerably more than expected.

Risk Factors Explained

The Insurance Group Rating Panel created a scale that assessed risk bands for every type of vehicle manufactured. Risk assessments are scaled proportionately, according to low-to-high risk factors. The higher the risk a vehicle represents, the higher the risk assessment value. The higher the risk factor, the higher your insurance premiums usually are.

The Rating Panel’s scale value relates directly to a vehicle’s risk of theft or of being in an accident. The criteria for determining an overall risk scale value assignment include a vehicle’s gross maximum weight, the engine size and power, and its acceleration rate. All of these factors are blended to determine the probability of bodily harm or extent of damage caused upon impact in an accident. Heavier, faster cars obviously rank higher on that scale than small, economic models.

Additional factors in insurance rate amounts include commonality of spare parts and qualified repairs. If parts and technicians are plentiful, repair rates are cheaper and completed more quickly, reducing costs and delays. A popular sports hatch, for example, is cheaper and easier to repair than, say, a rare vintage auto mobile. Those cost and time factors influence insurance rates: Better repair times and costs reflect that commonality in lower insurance premiums than for classic cars.

The security incorporated into a car by the manufacturer also factors into insurance rates. Those vehicles that are not easily vandalised or stolen rate much lower on the risk assessment scale than those with flimsy door locks. The presence and use of reliable car alarms reduce rates. You want your car to rank lower on this scale than higher, and you can nudge that numerical value downward by utilising Thatcham-approved devices recommended by your insurance company. Immobilisers and vehicle tracking devices are two oft-recommended devices that improve your auto mobile’s security and reduce its risk of theft. Before you have any installed, though, discuss the devices with your carrier to ensure you purchase recognised items that will reduce the cost of your insurance: They must meet certain standards to influence insurance rates.

Along with installing things like high-performance locks, daily actions you perform can also reduce theft risk: Parking your locked vehicle in a secured garage when not being driven is a major step. Driving safely and responsibly can earn no claims discounts that can reduce your cost of car insurance by as much as 70 per cent over time, and that significant of a reduction could compute to hundreds to thousands of pounds in your possession instead of the insurance company’s over your driving lifetime.

Cheapest Groups Explained

Your car’s make and model classification can have a powerful influence on your car insurance premiums. If you are unsure of any model’s risk assessment rating, don’t hesitate to ask prior to purchasing the vehicle. If the seller doesn’t know, a quick call to any FSA-authorised insurance broker or carrier will provide authoritative answers. Both insurance companies and consumers benefit from motorists clearly comprehending the group rating and its impact on insurance rates. Insurance companies often enjoy lower financial risks from informed consumers, and those informed consumers enjoy either immediately cheaper insurance with a low-risk car choice or by driving a higher-risk vehicle more responsibly.

Once you have had each risk group explained, don’t be shy: Ask any follow-up question or to have any answer rephrased so that you do completely understand. The better you do understand, the better informed your decision will be. When you are looking to buy a car or are saving to buy one and read about cars in magazines and online, you might read of the benefits of low-risk cars that extend beyond cheap auto insurance deals: New cars that have cheaper insurance rates are usually cheaper to own and operate with reduced fuel consumption and inexpensive repairs.

Choose the cover type, benefit options and discount programmes and rewards that provide the coverage you need in the price range you want. Know that your choice of vehicle may not fit into the lowest-risk group, but you have the information on hand or available to slide those rates downward both immediately and over time. With this knowledge already in hand, you might find that the car you really wanted, versus the one you might have gotten, is actually more affordable than you first thought.